Should iShares Morningstar Mid-Cap ETF (IMCB) Be on Your Investing Radar?

Core Insights - The iShares Morningstar Mid-Cap ETF (IMCB) is a passively managed ETF launched on June 28, 2004, with assets exceeding $1.14 billion, targeting the Mid Cap Blend segment of the US equity market [1][2]. Mid Cap Blend Overview - Mid cap companies have market capitalizations between $2 billion and $10 billion, offering higher growth prospects than large cap companies and lower volatility than small cap companies, making them a stable investment option [2]. Cost Structure - The ETF has an annual operating expense ratio of 0.04%, positioning it among the least expensive options in the market, with a 12-month trailing dividend yield of 1.42% [3]. Sector Exposure and Holdings - The ETF's largest sector allocation is to Industrials at approximately 17.6%, followed by Financials and Information Technology [4]. - Capital One Financial Corp (COF) represents about 1.19% of total assets, with the top 10 holdings accounting for around 6.82% of total assets under management [5]. Performance Metrics - IMCB aims to match the performance of the Morningstar US Mid Cap Index, having gained about 7% year-to-date and approximately 16.48% over the past year as of August 5, 2025 [6]. - The ETF has traded between $65.41 and $82.27 in the past 52 weeks [6]. - It has a beta of 1.02 and a standard deviation of 17.4% over the trailing three-year period, indicating effective diversification of company-specific risk with around 413 holdings [7]. Alternatives in the Market - IMCB holds a Zacks ETF Rank of 3 (Hold), suggesting it is a reasonable option for investors seeking exposure to the Mid Cap Blend area [8]. - Other comparable ETFs include the Vanguard Mid-Cap ETF (VO) with $85.39 billion in assets and an expense ratio of 0.04%, and the iShares Core S&P Mid-Cap ETF (IJH) with $96.30 billion in assets and a 0.05% expense ratio [9]. Investment Trends - There is a growing trend among retail and institutional investors towards passively managed ETFs due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10].